10-Year TIPS Will Reopen At Auction Thursday; Is It Worth A Look?

Summary

  • The real yield could rise above 0.50% for the first time since January 2016. If that trend holds, should you consider an investment?
  • The inflation breakeven rate is currently 1.89%, which is reasonable but puts this TIPS in the neutral zone versus a nominal Treasury.
  • How strong will the demand be at Thursday’s auction? Watch the yield trends this week before investing.

Read my full analysis on SeekingAlpha.com

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About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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